Danone targets consumers taking weight loss drugs with new drink

By Jessica DiNapoli

NEW YORK (Reuters) -Danone is introducing an Oikos brand drink targeting U.S. consumers using weight loss medications such as Wegovy, pledging the dairy-based beverage helps address the common concern of retaining muscle.

Patients on GLP-1 medications like Zepbound often shed valuable muscle rather than fat, worrying doctors and requiring diet changes, such as eating more protein.

Danone's new drink, called Oikos Fusion, has nutrients such as vitamin D and whey protein that the French company says help build and maintain muscle.

Danone is the latest food maker seizing the opportunity to sell new products to consumers dropping weight with GLP-1s, which users usually inject and are sometimes called "the shot."

The market is set to grow as drug makers look to develop the appetite-suppressing medication in pill form.

U.S. packaged food maker Conagra started labeling its Healthy Choice frozen meals "GLP-1" friendly, while rival Nestle launched Vital Pursuit to serve those on the medicine.

The frozen pizzas and pasta bowls generally offer higher amounts of protein and come in smaller portions.

Danone earlier this year introduced another high-protein Oikos smoothie to compete with Coca-Cola's wildly popular Fairlife. PepsiCo is also getting into "liquid protein" as Americans add more to their diet.

Danone's sales in North America grew more than 2% in its second quarter, in part because of Oikos, which is mostly a yogurt brand.

"This is a brand that has been growing at a rapid pace in the marketplace and strategically expanding," said Rafael Acevedo, president of yogurt at Danone North America.

Single bottles of the new drink will first be sold in Walmart for $2.12.

(Reporting by Jessica DiNapoli in New York; Editing by Kirsten Donovan)